NYS Real Estate Broker License Exam – 200 Practice Questions
with Answers & Rationales VERIFIED SOLUTIONS LATEST
UPDATE THIS YEAR
(Agency, Fair Housing, Contracts, Finance, Zoning & More)
1. Under New York law, a real estate broker acting as an agent of the seller must
provide the Agency Disclosure Form:
A) At closing
B) At the time of the first substantive contact
✓ C) At the first substantive meeting regarding a specific property
D) Only if asked by the buyer
New York Real Property Law §443 requires that the agency disclosure be provided
at the first substantive contact concerning a specific property, explaining the broker's
agency role.
2. A broker places a deposit from a prospective buyer into the broker's personal
checking account. This is:
A) Acceptable if the seller agrees
B) Allowed for a short period
, ✓ C) Commingling and a violation of license law
D) Permitted if the funds are later transferred
Commingling of client funds with the broker’s personal or business funds is strictly
prohibited. All deposits must be held in a designated escrow account.
3. Which of the following is an example of a unilateral contract in real estate?
A) A signed purchase and sale agreement
B) An exclusive right-to-sell listing
C) A bilateral purchase agreement
✓ D) An option to purchase
An option contract is unilateral: only one party (the optionor) is obligated to perform
(sell) if the optionee exercises the option. The optionee is not obligated to buy.
4. The New York State "Law of Agency" defines an agent as:
A) Anyone who shows a property
B) A person employed to perform any act for another or to represent another
✓ C) A person authorized to act on behalf of another, creating a fiduciary
relationship
D) Any licensed real estate salesperson
An agent is a fiduciary who is authorized to represent and act on behalf of a
, principal, with duties of loyalty, obedience, disclosure, confidentiality, reasonable
care, and accounting.
5. A broker in New York has a listing with a commission of 6%. The broker brings a
buyer and a sale results. The commission is:
A) Always split with the buyer's broker
✓ B) Earned by the listing broker who then compensates the selling broker per
the MLS offer
C) Paid directly to the selling agent by the seller
D) Negotiable only by an attorney
The listing broker earns the commission from the seller and pays the cooperating
broker according to the offer of compensation made in the MLS or co-brokerage
agreement.
6. Under federal Fair Housing laws, which protected class was added most recently
(sex, including sexual orientation and gender identity) via executive action and
subsequent HUD guidance?
A) Familial status
B) Disability
✓ C) Sexual orientation and gender identity
D) National origin
, In 2021, HUD expanded interpretation of "sex" discrimination under the Fair Housing
Act to include sexual orientation and gender identity, following the Bostock v. Clayton
County decision.
7. A real estate broker is also a licensed mortgage broker. When acting as the buyer's
real estate broker, the broker refers the buyer to his own mortgage company. This is:
A) Permitted without disclosure
✓ B) A conflict of interest requiring written disclosure and consent
C) Prohibited under New York law
D) Allowed if the buyer receives the best rate
Under New York Real Property Law and RESPA, any potential conflict of interest,
including self-referral to an affiliated business, must be disclosed in writing and
consented to by the client.
8. In New York, the primary purpose of the Property Condition Disclosure Statement is
to:
A) Provide a warranty of the property condition
B) Replace the home inspection
✓ C) Disclose known defects and property information to the buyer
D) Limit the seller's liability for defects
The PCDS (NYS Property Condition Disclosure Act) requires sellers to disclose
with Answers & Rationales VERIFIED SOLUTIONS LATEST
UPDATE THIS YEAR
(Agency, Fair Housing, Contracts, Finance, Zoning & More)
1. Under New York law, a real estate broker acting as an agent of the seller must
provide the Agency Disclosure Form:
A) At closing
B) At the time of the first substantive contact
✓ C) At the first substantive meeting regarding a specific property
D) Only if asked by the buyer
New York Real Property Law §443 requires that the agency disclosure be provided
at the first substantive contact concerning a specific property, explaining the broker's
agency role.
2. A broker places a deposit from a prospective buyer into the broker's personal
checking account. This is:
A) Acceptable if the seller agrees
B) Allowed for a short period
, ✓ C) Commingling and a violation of license law
D) Permitted if the funds are later transferred
Commingling of client funds with the broker’s personal or business funds is strictly
prohibited. All deposits must be held in a designated escrow account.
3. Which of the following is an example of a unilateral contract in real estate?
A) A signed purchase and sale agreement
B) An exclusive right-to-sell listing
C) A bilateral purchase agreement
✓ D) An option to purchase
An option contract is unilateral: only one party (the optionor) is obligated to perform
(sell) if the optionee exercises the option. The optionee is not obligated to buy.
4. The New York State "Law of Agency" defines an agent as:
A) Anyone who shows a property
B) A person employed to perform any act for another or to represent another
✓ C) A person authorized to act on behalf of another, creating a fiduciary
relationship
D) Any licensed real estate salesperson
An agent is a fiduciary who is authorized to represent and act on behalf of a
, principal, with duties of loyalty, obedience, disclosure, confidentiality, reasonable
care, and accounting.
5. A broker in New York has a listing with a commission of 6%. The broker brings a
buyer and a sale results. The commission is:
A) Always split with the buyer's broker
✓ B) Earned by the listing broker who then compensates the selling broker per
the MLS offer
C) Paid directly to the selling agent by the seller
D) Negotiable only by an attorney
The listing broker earns the commission from the seller and pays the cooperating
broker according to the offer of compensation made in the MLS or co-brokerage
agreement.
6. Under federal Fair Housing laws, which protected class was added most recently
(sex, including sexual orientation and gender identity) via executive action and
subsequent HUD guidance?
A) Familial status
B) Disability
✓ C) Sexual orientation and gender identity
D) National origin
, In 2021, HUD expanded interpretation of "sex" discrimination under the Fair Housing
Act to include sexual orientation and gender identity, following the Bostock v. Clayton
County decision.
7. A real estate broker is also a licensed mortgage broker. When acting as the buyer's
real estate broker, the broker refers the buyer to his own mortgage company. This is:
A) Permitted without disclosure
✓ B) A conflict of interest requiring written disclosure and consent
C) Prohibited under New York law
D) Allowed if the buyer receives the best rate
Under New York Real Property Law and RESPA, any potential conflict of interest,
including self-referral to an affiliated business, must be disclosed in writing and
consented to by the client.
8. In New York, the primary purpose of the Property Condition Disclosure Statement is
to:
A) Provide a warranty of the property condition
B) Replace the home inspection
✓ C) Disclose known defects and property information to the buyer
D) Limit the seller's liability for defects
The PCDS (NYS Property Condition Disclosure Act) requires sellers to disclose
